One of my old high school classmates posted on FB an article entitled "Obama is the Best Worst President Ever." (See: http://blog.sfgate.com/morford/2014/07/08/the-best-worst-president-ever/ ) I was a bit surprised since I knew him to be one of those liberal guys, so I read the article. Well, it's really a tome to how great the Black Narcissist is and how those who do not understand His greatness are hypocrites and racists.

One statement in the article bugged me. Obama is all-wonderful because the stock market is in the stratosphere. Obama even claimed this as one of his achievements in his petulant little post-election press conference.

I tried to find the shortest and best little article to at lease deflate his argument a bit. (I didn't want to spend much quality time on searching, because, as we all know, you just can't argue with a degenerate, mentally challenged Lib who wants to be left in a cocoon of self-importance.) This is what I found:

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To understand why the program has had this effect you have to know what quantitative easing does. The Fed policy of buying government debt has a depressive effect on interest rates. They have been able to do this because when Treasury department holds their bond auctions, the Federal Reserve has had a hand in buying a majority of the bonds issued. In fact, to date, the Federal Reserve is the largest holder of U.S. Treasuries. This has kept rates down artificially for the last two years.

If you have half a brain, you understand that artificial downward pressure will eventually explode. Or implode, as in the U.S. economy.

The killer quote, in all its simplicity:

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Creating money to buy bonds enhances liquidity. It also devalues the dollar. It is simple math, when you print more money the money is worth less. As a result everything that is dollar denominated, that is bought with dollars, goes up in price. Food, energy, clothing, everything we import and yes, the stock market. The stock market is an asset class unto itself. With investors using dollars to purchase (invest) in the stock market, the pricing of those assets goes up.

Get it? Print more dollars out of thin air, the value of those dollars decreases. It takes more to buy less. Same with the stock market.

Logged

The problems we face today are there because the people who work for a livingare outnumbered by those who vote for a living.--------------The enemy of my enemy is my friend; the friend of my enemy is, well, he is just a dumbass.

Get it? Print more dollars out of thin air, the value of those dollars decreases. It takes more to buy less. Same with the stock market.

Yeah but these idiots think minting a couple of trillion dollar platinum coins would solve the problem. They don't understand money, because money is a symbol of the value of human labor, initiative and risk. They don't understand that because to them human labor is not WORTH anything - the things people produce are, but the person who produced them is the property of the state - what they produce is owned collectively, and money in that environment is irrelevant.

Their battle isn't with us - its with reality. That is why they have to cook all of the economic books to make reality seem other than it is. They are no longer fooling even the dumbest of us, because any moron can see their Doritos bag is half full and costs more.